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Category > Management Posted 17 Jan 2018 My Price 8.00

H&Y Drug Corporation

Conceptual Understanding: Management Information needs

C3. H&Y Drug Corporation manufactures most of its three pharmaceutical products in India. Inventory balances for March and April follow.

 

 

 

March 31

April 30

Materials Inventory

$258,400

$228,100

Work in Process Inventory

138,800

127,200

Finished Goods Inventory

111,700

114,100

During April, purchases of direct materials, which include natural materials, basic organic compounds, catalysts, and suspension agents, totaled $612,600. Direct labor costs were

$160,000, and actual overhead costs were $303,500. Sales of the company’s three prod- ucts for April totaled $2,188,400. General and administrative expenses were $362,000.

1.    Prepare a statement of cost of goods manufactured and an income statement through operating income for the month ended April 30.

2.    Why is it that the total manufacturing costs do not equal the cost of goods manufactured?

3.    What additional information would you need to determine the profitability of each of the three product lines?

4.    ConCept ▶ Indicate whether each of the following is a product cost or a period cost:

a.    Import duties for indirect materials

b.    Shipping expenses to deliver manufactured products to the United States

 

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Chapter Assignments                                                                                                                                           749

 

 

 

 

 

 

 

LO 6

 

 

c.    Rent for manufacturing facilities in India

d.   Salary of the American manager working at the Indian manufacturing facilities

e.    Training costs for an Indian accountant

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Maurice Tutor
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Status NEW Posted 17 Jan 2018 11:01 PM My Price 8.00

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